The Larry Williams Interview
In the December 2007 issue of Futures Magazine, we gave people a small glimpse of the Larry Williams University. Here is the full version of an interesting discussion on what Larry is doing now as an educator of the markets.
For seasoned commodity traders, Larry Williams needs little introduction. After all, he holds the all-time record for the real money made in the largest real time commodity trading championship (approximately 11,000%) and is the author of nine best-selling books on the markets. He has taught more people about the futures markets world wide than anyone else in history. Jeff, a new trader from Atlanta, had some very interesting questions. So we thought that we would share them with everyone.
Jeff: So Larry, you’ve started a University. What’s it all about?
Larry: Well, it has always been a dream of mine to have a place for people to learn how to do what I do. Now, thanks to the Internet, people can be anyplace in the world and take a course with me. It doesn't’t matter where I am or where they are. I can be with them to show them what I do.
Jeff: But a University?
Larry: Yes, I think that is important. People think learning to become a good trader is just a one-step approach, a one-stop solution. That simply isn't so. There’s so much to learn. I really am still learning myself, especially with the new electronic markets. A University approach allows people to take classes in a logical order, with continual access to course materials unlike a weekend seminar. Students can progress to the next level at their own pace.
Jeff: How many students have you had and how have they done?
Larry: So far we have already had over 300 students take our new online advanced courses. This is the first time I have spoken in public about the University. My trademark introductory course, “Cracking the Code”, teaches people the basics of commodity trading. What futures are, how they trade, the basics as well as how to trade... tomorrow. This course was available before the University and thousands have purchased it over the last couple years. I’ll be the first to tell you that a lot of people stop right there. It’s like somebody who buys an ab-roller and never uses it; it ends up in the garage. But about 20% of our students become really serious about commodity trading and want to go to another level... they really want to learn more. These are hands on people and I love to teach them.
Jeff: So what is the core of your teachings?
Larry: Since I think charts don’t matter nearly as much as reality, my basis is that conditions drive prices not charts. I teach students the conditions that move markets… the conditions I have used to trade with over the last 45 years. I teach them the important aspects of the Commitment of Trader Reports. COT reports are invaluable once you know how to read them.
Jeff: You are the grandfather of those reports it seems. You’ve been using that data since 1970 and wrote the first book ever on the reports, right?
Larry: That’s correct. I also show how to tell if a commodity is overvalued or undervalued and teach them my favorite long-term set up techniques, such as the Pinch, the Paunch, and a variety of other entry techniques. Ultimately everybody needs entry techniques… it isn't enough just to know that a market is set up for a big move, they also need to know when to get in.
Jeff: So you think entries are important?
Larry: That’s an interesting point. Entries are not as important as people think. By that I mean the setup of the market. The future direction of the market is really more important than an entry. After all, if you know a market is going to go higher you can throw darts and get aboard for the ride. So while we all need entry techniques, the most important thing is to know the future direction of the market.
Jeff: You mean you can know the future direction of the market?
Larry: Well, you don’t always know the direction of the market, but we do know the best bet to make on what the direction will be. I’ve found that in 45 years of trading there are certain conditions that are synonymous with market tops and bottoms. So I can teach people what these conditions are. Then we can look to get into phase with the market with entry techniques based on what the conditions are.
Jeff: Like seasonal patterns? I know you wrote the first book on that ever in 1973!
Larry: Yes, seasonals are a good tool, but you have to be careful. They don’t repeat like clockwork. So they are suggestive, not mandatory.
Jeff: These conditions are not just chart reading?
Larry: Oh no. They are far from chart reading. I’m talking about things that really matter in the marketplace, like supply and demand, what the insiders are doing, and valuation of the marketplace... along with what things are fundamental to the markets. You must remember, the markets exist for the producers and users, not for the speculators. So we need to understand what the producers and users of a commodity are doing. Learn that, and you can get in alignment with what these great massive powers are doing and hopefully increase your success as a trader.
Jeff: How Do I become a successful trader?
Larry: I wish there was one easy answer, a silver bullet or perfect system. Despite seeing those offers 5 times a day on the internet, I’m going to tell you what you probably don’t want to know! Yes, many people become successful at this, quite their jobs, retire early, lead a dream life. That does happen…all the time... But it does not happen overnight. I takes learning some the things I mentioned earlier, it takes understanding your own emotions and getting not good--- but really great tools and techniques to work with. That’s where I come in…I think I can accelerate or jump start a trader’s career; hence the University approach to make certain the foundation is in place.
Jeff: What should I expect a trader?
Larry: First I’d say to expect the most incredible life you can imagine - if you can become successful. There’s just nothing else like the life of a trader/investor. Expect the first 2-3 years you will learn more than you earn. Then earnings take off and making 60% to 100% per year (sometimes more) is a real possibility. Never forget though this is not a straight path to heaven. Just like in any college; some students drop or flunk out, or just try to skate through without really learning. That’s reality.
Jeff: Is there one thing that is the most important?
Larry: There sure is. If you don’t learn how to manage your account, what size of positions to take, you will blow up and lose. No doubt in my mind about that. It’s not the markets that “do it” to you…it’s how you trade them.
Jeff: Where do I begin?
Larry: Why not right here at the LWU? Stock Investors just have to get our Sure Thing Stock Investing course. That will show you a very easy way to make about 20% a year on your money, investing in select blue chip issues. This approach maximizes return with little risk. What is earning 20% a year on your investments worth? The course is way under priced at just $399 and will be released in early December. It is in final production now.
Commodity Traders, I think, really should begin with our introductory course “Cracking the Money Code”… even if you have been trading for a year or more. I say this because you will learn new concepts, ones that you are not using to trade with now. It is such a great value $249. You learn entry techniques, exit techniques, and money management.
Once we get that foundation in place with Cracking the Money Code, it's time to learn more tools and go deeper into the subject of trading. The next progression is our Sure Thing Commodity Trading course. Think of it as if you have finished the first level of Trading and now it's time to take Trading II. Each course builds on the previous course. You can read what students have said about our second level course, Sure Thing Commodity Trading, by clicking here and going to our testimonial page.
With those two courses under your belt then you can move onto Picture Perfect Trading. This is where you will learn the single best Set Up I know that forecast massive market moves. This is the same pattern I use in my annual January and mid year forecasts that have had calls like this
- Sell the Nasdaq in January '07. It dropped $15,000 per contract.
- Buy Copper in January '07. It rallied $30,000 per contract.
- Buy Gold in August '07. It rallied $15,000 per contract.
- Buy Bonds in August '07. It rallied $6,000 per contract.
Plus there’s a lot more… you will learn how to use the COT large trader data as well as my Commercial Proxy Index that you can apply to any instrument that does not have a CFTC reporting requirement (CRB, Dollar Index, Stocks, indexes in other countries etc...).
Jeff: That's a lot to absorb and consider. I appreciate your time and insight and look forward to taking your courses.
Larry: I appreciate your questions because I know they will help future students understand what we are trying to accomplish. Look, this is a profession and people need to treat it that way. You wouldn't operate on a person without going to medical school, would you? You need to get educated in the markets to be consistently successful and that's what we are trying to do with LWU.
Jeff, as I always say good luck and good trading! What it takes to succeed in this business is understanding what makes markets move and I think I'm the guy who can best teach that to people.
Let me add, I ’ve been following the markets since 1962 and just can’t think of a better career or way to live!
